Rt Hon David Blunkett, MP for Sheffield Brightside and Hillsborough, has reacted to today’s Financial Times story, which indicates that Nick Clegg and David Cameron have wrongly accused the directors of Sheffield Forgemasters of being unwilling to dilute their shares, as an excuse to cancel the proposed £80 million Government loan.
Both the Deputy Prime Minister and the Prime Minister have indicated during debate in the House of Commons that the directors of Forgemasters were unwilling to dilute their shares; but in a private letter to chief executive Graham Honeyman, Mr Clegg has now acknowledged that the directors were, in fact, prepared to do so.
Mr Blunkett said: “This latest revelation drives a coach and horses through the mealy-mouthed twisting and turning of Nick Clegg over the denial of investment to Forgemasters – and the statements made by himself and his leader, David Cameron.
“Nick Clegg not only owes a deep apology to Forgemasters, but also to the people of Sheffield for attempting to divert attention from the failure of the coalition to understand the structure of the company, its importance to our city and the critical nature of advanced manufacturing for our competitiveness internationally.”
Mr Blunkett was speaking ahead of a short debate in the House of Commons on Forgemasters, to be attended by Sheffield’s Labour MPs, which has been called by Sheffield South-East MP Clive Betts for Wednesday evening.
ENDS
Notes to Editors
During oral questions to the Deputy Prime Minister in the House of Commons on 22 June, Mr Clegg said Forgemasters’ directors “did not want to dilute their own shareholdings in the company. Do I think it is the role of Government to help out owners of companies who do not want to dilute their own shareholdings? No, I do not” (Official Report, House of Commons, 22 June 2010, col. 148).
2. During Prime Minister’s Questions on 7 July, Mr Cameron said in response to a question from Penistone and Stocksbridge MP Angela Smith: “The question is whether it is an appropriate use of taxpayers’ money to give it to a business that could raise that money by diluting its shareholding” (Official Report, House of Commons, 7 July 2010, col. 369).
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